"No sooner had Nokia (NOK) made the announcement of its line of Nokia X Android based phones than an article appeared proposing that this would be good for Microsoft (MSFT). To his credit, fellow SA blogger Paulo Gorgo did his best to splash water on the notion. As I'll show in this article, there's nothing in Nokia's announcement that Microsoft should like, and no reason to think Microsoft was meant to.
"Why get in Microsoft's face with X at this juncture? When the sale of Nokia's D&S division to Microsoft closes, X will be dead on arrival. The point of X is to ensure that Microsoft doesn't back out of the deal. It's a message that if the deal falls apart, Nokia will give up on its Windows phones and go over to Android. And of course, all the links to Microsoft services will be ripped out in the process.
"Would Stephen Elop really want to do this, given that he'll be transferring back into Microsoft when the deal is concluded? No, but I don't think he had any say in the matter. He's not the CEO of Nokia anymore.
"The message speaks volumes about the fragility of the deal. The purchase of D&S was the final stroke of the old Microsoft regime under Steve Ballmer. We now have a new CEO, Satya Nadella, who may be wondering if he really wants to go through with this in light of Google's (GOOG) experience with Motorola."